Petrol, diesel to cost more in MP

Additional value added tax (VAT) on oil prices will be levied by the state government. It will lead to an increase of Re 1 in petrol prices and 50 paisa in diesel pricesTNN | January 04, 2016, 08:51 IST

Indore: While Central government in the last few months has reduced petrol and diesel prices, a recent notification from department of commercial tax, Madhya Pradesh, coming into effect from Sunday midnight will burn a hole in common man's pocket.

As per the notification, additional value added tax (VAT) on oil prices will be levied by the state government. It will lead to an increase of Re 1 in petrol prices and 50 paisa in diesel prices. Petrol will cost Rs 64.82 per litre in the state with effect from Sunday midnight as against Rs 63.81 currently.

A litre of diesel will cost Rs 50.02 as compared to Rs 49.52 presently, as per the official notification from department of commercial tax, Madhya Pradesh. Interestingly, experts claimed that in the international market oil prices are on the decline and the Central government had cut the petrol prices by 63 paisa per litre while diesel rate was reduced by Rs 1.06 a litre.

"State government is now charging additional VAT on oil prices. Madhya Pradesh has been charging 31 per cent VAT on petrol which is quite high as compared to many states," said Sudhir Airen, Secretary, Madhya Pradesh Federation of Petroleum Product Dealers. There are 4,500 pumps in the state of which 80 petrol pumps are in Indore. Earlier, in November, state government had levied additional VAT on petrol and diesel.